USDC/USDT refers to the trading pair between two stablecoins: USD Coin (USDC) and Tether (USDT). Both are pegged to the U.S. dollar, so this pair usually trades very close to a 1:1 ratio.

Here's a quick breakdown:

USDC: Issued by Circle, considered more transparent and regularly audited.

USDT: Issued by Tether, has higher liquidity but has faced scrutiny over reserves.

Why Trade USDC/USDT?

Arbitrage opportunities when there's a slight price difference.

Hedging against issues with one stablecoin's solvency or peg stability.

Converting between exchanges or platforms that favor one over the other.